When we think about what services we are going to offer we immediately think of the Service Catalog.  We must also consider what agreements go along with the delivery of those services.  What levels of utility and warranty are going to be expected over the life of our services?   What about services that will be supplied by external service providers; who is going to manage those?  Let’s take a look at which ITSM processes we will need to engage to ensure that we are able to strategize, design, deliver and maintain services that will meet our customers’ needs over the lifetime of the services. In Service Offerings and Agreements (SOA), we look at Service Portfolio Management (SPM), Financial Management (FM), Demand Management (DM) and Business Relationship Management (BRM).  These are all processes within the Strategy stage of the Lifecycle.  We also explore Service Catalog Management (SCM), Service Level Management (SLM) and Supplier Management (SM) processes within the Design st

A short while ago I was asked this question from one of our reader: “ I want to set a KPI around how much of the time we meet the SLA. Like 'meeting the SLA x% of the time'. Can someone advise what would be that 'x'? What is the common practice?  Is there an industry standard around this?”   I’m going to have to go with the consultant answer and say it depends.   First, are we talking about a single service to a single customer? Are we talking about multiple services to multiple customers or somewhere in between those two extremes? Your SLAs should include details of the anticipated performance that your customer expects.  First thing you need to do is discuss with your customer what are the levels of utility and warranty they are expecting? Then document and agree these targets are reachable given the resources that are at your disposal and any constraints that may be discovered. The requirements for functionality (utility) should be defined by your BRM pr

The NYSE reportedly told floor traders the exchange had to suspend trading due to an error with a systems upgrade that was rolled out before the market opened.  Early in the morning the NYSE sent out a message alerting traders that there was a reported issue with a number of the exchange’s gateways.  It appears that performance degraded from there and a few short hours later trading halted! ( http://fortune.com/2015/07/08/nyse-halt/   for full story ) How does this happen?  Other issues reported that same week included United Airlines who closed all flight bookings due to what was labeled a “Router” issue.   Microsoft GoToTraining impacted several business owners and customers due to a suspected “Citrix” upgrade.   If ever a case for why do we need Service Management processes that are aligned with business outcomes can be made, one only needs to listen to the news.  Just yesterday a computer system outage disrupted Spirit Airlines flights at Chicago O'Hare, forcing the carrie

If you are in the position of providing IT services to customers then you know the importance of the statement: Utility plus Warranty equals Value (U+W=V).  So when we talk about value, we must consider who determines that value and what are the components that go into making up the agreements that will define how value gets created and delivered.  The value of a service is normally defined as “the level of service that meets customer expectations” and is often measured by how much the customer is willing to pay for the service. An industry trend today that may have been excluded in the past is the ability of the service provider to be able to define and document the costs involved in providing that service beyond its core value. Services being intangible and unlike products do not have much inherent value.  This value does not get realized until the service is actually utilized and enables someone to create the desired business outcome, which means that the provider of the servic